Hope Construction Materials has signed an unusual supply deal with Miller Construction that commits Miller’s entire supply chain to using only Hope ready-mixed concrete on a major northeast development.
As a result, Hope expects to be supplying 20,000m3 of concrete to all the building schemes that will make up the expansive Stephenson Quarter in the centre of Newcastle upon Tyne.
The three-year, £200m project, set to be completed in 2015, is the highest value construction project in the region. Stephenson Quarter will see the regeneration of a 10-acre site next to Newcastle’s central train station. It will feature a hotel, residential and commercial properties, retail space and other mixed use developments.
The umbrella deal – which Hope believes is the first of its kind in the construction industry – will see Hope’s ready-mixed concrete specified in tenders for all Miller Construction’s subcontractors. Expected benefits include reduced traffic on site and increased efficiency.
Antony Steele, national accounts manager at Hope Construction Materials, said that the partnership could serve as a template for major construction projects in the future.
“The move is a brave step for both parties, who have gone against the industry norm to strike a ground-breaking agreement, which reflects the innovation and dynamism of both companies,” he said.
“We have an enterprising focus and we were keen to talk to Miller Construction not only about what we can supply but how we can add value to the overall project – we feel this agreement delivers value for both parties.
“The partnership enables Miller Construction to focus on getting the build complete while we concentrate on getting them the right materials at the right time. We hope this will be a stepping stone to a broader, long-term relationship with high-quality business partners.
“Hope has three concrete plants in Newcastle upon Tyne and one will be dedicated to supplying the project for the next two years. We’re convinced that the efficiency gains the partnership will offer will see this type of agreement becoming increasingly commonplace win the construction industry.”
Miller Construction regional managing director Ian Jubb added: “Specifying the supply of high quality concrete that will be delivered efficiently to this busy city centre location will greatly support the overall delivery of this major project.”